- Got admission to top institutes such as IITs or IIMs but don’t have the required sum for studies there?
- Don’t worry, SBI Scholar Loan is here to help you!
For getting admission into premier institutes in India, you could need funds to the tune of INR 10 lakh and more. But don’t worry as the country’s largest lender State Bank of India (SBI) offers you the fund for top educational institutions such as IITs IIMs, NIIT, etc. You just need to secure the seat for yourself through the entrance or get the required marks in the qualifying examination. Students get 100% financing for the admission, and the loan covers all your expenses during the course period, including the hostel fee too. But are you eligible for a SBI scholar loan by which the renowned state-owned lender provides you with the required sum? To know whether you are eligible for the SBI scholar scheme or not, read the post further.
SBI Scholar Loan Eligibility Hinges on the Category of institution
The institution is divided into different categories and based on that SBI sets your scholar loan limit. If you belong to the category AA, you could get the desired loan amount without having to submit collateral for the same. The category-wise division of institutes can be seen below.
When students can secure their admission to the below mentioned educational institutions, they can borrow up to INR 40,00,000 without collateral security.
- Indian Institute of Management (IIM), Ahmedabad
- Indian Institute of Management (IIM), Bangalore
- Indian Institute of Management (IIM), Calcutta
- Indian Institute of Management (IIM), Indore
- Indian Institute of Management (IIM), Indore- Mumbai Campus
- Indian Institute of Management (IIM), Kozhikode
- Indian Institute of Management (IIM), Lucknow
- Indian Institute of Management (IIM), Lucknow- Noida Campus
- Indian School of Business (ISB), Hyderabad
- Indian School of Business (ISB), Mohali
- Xavier Labour Relations Institute (XLRI), Jamshedpur
- Xavier Labour Relations Institute (XLRI), Delhi-NCR
Students who secure admission to List A institutions can borrow up to INR 20 lakh without collateral, and INR 30 lakh with collateral such as fixed deposit, insurance, land, property, etc.
- Birla Institute of Technology & Sciences (BITS), Pilani
- BITS (Pilani) – Goa Campus
- BITS (Pilani) – Hyderabad Campus
- Indian Institute of Corporate Affairs (IICA), Manesar
- Indian Institute of Foreign Trade (IIFT), Delhi
- Indian Institute of Foreign Trade (IIFT), Kolkata
- Indian Institute of Management (IIM), Bodhgaya
- Indian Institute of Management (IIM), Jammu
- Indian Institute of Management (IIM), Kashipur
- Indian Institute of Management (IIM), Nagpur
For admission to the List B institutions, you can borrow up to INR 20 lakh from the bank. And it includes all your expenses, annual fee, semester exams, books, equipment, etc. To know which are the institutions of category B check out the points below.
- Army College of Dental Sciences (ACDS), Secunderabad
- Army Institute of Law (AIL), Mohali
- Dhirubhai Ambani Institute of Information & Communication Technology (DAIICT), Gandhinagar
- Goa Institute of Management (GIM), Goa
- Indian Institute of Science (IISc), Bangalore
- Indraprastha Institute of Information Technology (IIIT), Delhi
- National Law School of India University (NLSIU), Bangalore
- Thapar University, Patiala
- Visvesvaraya National Institute of Technology (VNIT), Nagpur
- National Institute of Design (NID), Amaravati
You can borrow up to INR 7.5 lakh from SBI under this category and need to provide collateral for a loan above INR 7.5 lakh. A student can borrow up to INR 30,00,000 with collateral under the scheme.
- Centre for Environmental Planning & Technology (CEPT), Ahmedabad
- Chandragupt Institute of Management, Patna
- Dr. B R Ambedkar National Institute of Technology (NIT), Jalandhar
- Indian Institute of Petroleum and Energy (IIPE), Visakhapatnam
- Indian Institute of Forest Management (IIFM), Bhopal
- National Institute of Technology (NIT), Agartala
- M S Ramaiah Medical College (MSR-MC), Bengaluru
- Sardar VallabhBhai National Institute of Technology (NIT), Surat
- Netaji Subhas Institute Of Technology (NSIT), Delhi
It is necessary to provide the entrance test result or proof of admission such as an admission letter to SBI. along with all other income, KYC, and other details. The placement history of the institution matters for the loan sanction. If the institution doesn’t have a great placement record, you could be denied a loan from SBI.
SBI Scholar Scheme Interest Rate
SBI charges the rate of interest on your loan based on the 1-month Marginal Cost of Lending Rate (MCLR). It charges a certain portion of spread over the MCLR. Your education loan interest rate does not change with the MCLR and remains fixed for the tenure. The 1-month MCLR of SBI is 6.95%, check out the table below to know how the list of institutions decides your interest rate.
Note: For the at-time course from the selected institution the rate of interest is 9.55% and SBI provides a concession of 0.50% for girl students.